Day One Accounting
Urgency and accuracy are imperative when building a foundation for financials during a merger. We work with you to arrive at an acquisition date balance sheet that reflects the assets and liabilities of the target at fair value in accordance with FASB ASC Topic 805 “Business Combinations.” Our ValuCast software provides timely deliverables through efficient models and processes. In partnership with our subject matter experts, you’ll receive insight into our methodology and a robust deliverable including both discussion and analysis, as well as supporting exhibits. Having represented hundreds of bank transactions across the country, our consultants are ready to help you consider each and every scenario.
In accordance with these standards, the consultants’ valuation report will include a Statement of Assumptions and Limiting Conditions and the Valuation Analysts’ Certifications and Representations. The standard of value will be fair value as defined under FASB ASC 820-10, “Fair Value Measurements and Disclosures.” Our Day One service can also assist with establishing general ledger accounts and Day One entries which will reflect both a GAAP basis (acquisition-date fair values) and a tax basis (adjustments for tax purposes).
Choosing to merge with another institution requires an understanding of all acquired loans. ValuCast assists your institution with the recognition of the non-credit discount as part of the implementation of ASC 326 and 310-20 for the remaining contractual life of the assets. You have the option to run the calculations internally using our ValuCast system or leverage Valuant’s team of advisors to prepare monthly and quarterly reports. Projections of the non-credit amount to be recognized in the income statement are easily determined through dashboards included in the ValuCast system as well as system-generated reports. Lastly, streamline your journal entry process by leveraging the income recognition builder and general ledger build-out functionality to get system extracts of journal entries that can then be directly entered into your company’s general ledger system.
Identify Challenges Early
Implementing the right processes and automated systems from the start can ultimately reduce your overall risk and investment. With our ValuCast software, you will have the ability to forecast potential issues through a transparent and flexible model that performs ongoing processing and forecasts.
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